Tax Credit Deadline Around the Corner
Many OH homeowners relied on tax credits from the Inflation Reduction Act to cut their Ohio energy bills. But earlier this year, the passing of the One Big Beautiful Bill (OBBB) cut these credits short. Now, homeowners have a deadline at the end of the year to install home energy projects to claim their tax credit. Luckily there is still plenty of time to cut energy usage and earn these credits for your 2025 taxes.
Best Home Energy Improvements
According to EIA surveys, over half of energy use in homes is just for heating and cooling. This means that you can put the biggest dent in your bills by replacing old heating and cooling equipment. For example, replacing a 10 year old air conditioner unit could save you up to 20% on your annual costs.
The best long-term savings come from geothermal heat pump systems. Energy Star certified systems use 61% less energy than standard models and can save you as much as $830 annually or up to $9,500 over the 15 year life of the product. On top of this, you could earn tax credits of up to 30% of the cost to install it.
If your home relies on baseboard heat, you could improve your energy efficiency with a ductless heating and cooling system. Ductless systems are also easy to install, which means it could be completed before the tax credit deadline. Tax credits for these systems go up to 30% of costs with a $2000 maximum.
Finally, you could update your natural gas furnace. This could could make your home up to 15% more energy efficient saving you up to $70 annually. The tax credits for these improvements are capped at $600. However, energy loss from the duct work can add as much as 30% more onto home energy usage. But, you can get an additional credit by sealing and insulating it.
Remember, you can also cut your heating and cooling costs further with smart thermostats
Water Heater Home Energy Improvements
Water heaters account for up to 18% of energy used in most homes. Older homes will likely have a gas fired or electric tank style water heater installed. However, heat pump water heaters can save you up to $600 a year compared to tank style models. On the other hand, a tankless water heater are up to 41% more efficient over regular tank heaters if you use less than 41 gallons of hot water per day. Remember, you could earn tax credits of up to $2000 (or up to 30%) with these upgrades.
Beat Tax Credit Deadline
Even though the end of year tax credit deadline is coming fast, there’s still time to set up long term energy savings. And, of course, you’ll cut down your 2025 taxes. But the best way to save it by shopping for the best electricity rates in town.
Start your energy plan shopping right here at https://www.ohenergyratings.com. You can also count on us for the news that could affect your bills.